Students To Help Finance Department Take Inventory

DELRAY BEACH — With help from college students, the Finance Department hopes to repair a situation that left the city with about $70,000 in equipment unaccounted for.

During an inventory last summer, 6,000 items in 12 departments were matched against a computer printout, and the results did not balance, said David Huddleston, director of finance.

A report submitted in April to the City Council from Whinney and Ernst, certified public accountants, said there were ``substantial discrepancies between the accounting records and the actual fixed assets inventoried by the Delray Beach departments.``

The firm said assets worth $694,763 were unaccounted for, but Huddleston said the figure does not consider the depreciated value, which reduces the amount by 80 percent.

The items, many of which were damaged and outdated, probably were not included in an audit by a West Palm Beach firm partially because of a lack of time to perform the manual task, Huddleston said.

``Last year, it was on the honor system, whereby they (staff) went in and did their inventory by hand,`` Huddleston said. ``They may or may not have taken enough time to physically check all the items with a computerized inventory list.``

Students from Florida Atlantic University will assist the Finance Department this summer in conducting a complete inventory in all city departments, he said. He said the inventory should be completed within a 12-week period and will cost the city between $4,000 and $5,000.

``Most of the items are out-of-date, damaged or were sold, traded or used as parts to repair other pieces of equipment,`` Huddleston said.

Council member Malcolm Bird said the departments lacked appropriate inventory control.

``We buy a lot of things, but we don`t seem to count them very well,`` he said.

Although the inventory began in late summer, Huddleston said the total amount was not found until November. The accounting firm was then asked to audit the reports submitted by all the departments. After compiling the statistical data, the firm presented a ``management letter`` to the City Council and the city`s Board of Internal Audit which detailed their findings.

``The situation certainly bears an investigation,`` said Council member Arthur Jackel. ``I don`t see any wrongdoing at this point.``

Jackel recommended that City Manager Jim Pennington look into the matter and compile ``a complete, objective report which would tell the truth.``